Home / Management / IFC and BSE launch scorecard tool to promote governance improvements

IFC and BSE launch scorecard tool to promote governance improvements


Comments / 1256 Views / Tuesday, 6 December 2016 00:02


IFC, a member of the World Bank Group, and BSE, Asia’s oldest exchange, have developed a unique Corporate Governance Scorecard tool. 

A first-of-its-kind initiative, the tool will aid companies in identifying areas of improvement against generally accepted good practices and promote effective decision making, risk management and governance structures.

The scorecard was finalised through a process of in-depth review and public consultation with key stakeholders. The tool was used to assess the top 30 companies on the BSE. The final methodology with detailed questionnaire and the assessment report was unveiled here today.

The scorecard will help companies measure their corporate governance practices against local regulations and international benchmarks. Institutional Investor Advisory Services, an Indian advisory firm that provides independent opinion, research and data on corporate governance issues, was the technical partner responsible for drafting the Scorecard questionnaire and methodology.

“The launch of this Scorecard will help companies to go the extra mile beyond compliance and surpass global standards,” said BSE Ltd. MD and CEO Ashish Chauhan. “We appreciate the technical expertise provided by our partners and believe that the tool is a revolutionary step towards significantly raising governance practices,” added Chauhan.                           

India has been consistently raising the bar for implementation of good Corporate Governance practices. The Scorecard aims to encourage implementation of standards to generate incentives for reform, help direct change and ensure a process of continual improvement. It can also be used by a wide range of stakeholders including regulators, promoters and investors.

“The Scorecard will encourage Indian companies to strengthen corporate governance practices, which will enable easier access to capital from global markets, improve transparency and enhance investor confidence,” said Jun Shang, Country Manager for IFC India. “We hope that the Scorecard will help companies approach governance as a principle-driven exercise and adopt best practices,” Shang added.

Globally, IFC’s work on corporate governance has resulted in adoption of 95 laws, regulations and codes. In South Asia, IFC is implementing a Regional Corporate Governance Project with donor support from Japan’s Ministry of Finance. This five-year project provides advisory services to individual firms and partners with local institutions, such as the Indian Institute of Corporate Affairs, to strengthen sector-level work on corporate governance.

India is IFC’s top country exposure, globally. IFC’s committed portfolio in India is over $ 5 billion as of 30 June. In FY16, IFC committed $ 1.1 billion in new investments. In addition to strengthening local capital markets in India, IFC is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, helping create conditions to attract increased private capital, and helping structure public-private partnerships.


Share This Article


COMMENTS

Today's Columnists

Mobilising against measles

23 February 2017

The WHO South-East Asia Region is making rapid progress against vaccine-preventable diseases. The Region was certified polio-free in 2014. Maternal and neonatal tetanus was routed in 2016. And routine immunisation for diseases such as diphtheria a...


A prelude to the accountancy profession

22 February 2017

An honourable profession  It is an honour to share such a great profession as a Chartered Accountant (CA). A profession that has been evolved over thousands of years, weathered various storms and tested for time. Accountancy professio...


‘Better plan’ for solar energy and coal-hydro compatibility

22 February 2017

By K.C. Somaratna Introduction I was very happy to see that two-page advertisement in Daily FT on the first ever PV Solar park at Hambantota commissioned to develop 10 MW and I could imagine how happy the Minister and State Ministe...


Rationale for mandatory credit allocations: A counter view

21 February 2017

By Joan de Zilva Moonesinghe “Whatever ‘name’ is given to a just social system, nevertheless not its name but its content is what is important, andcalls for a ‘strong juridical framework’, that is, a legal ...


Columnists More